An in-depth review of Virgin Money Business Banking.
Virgin Money Business Banking Review
Virgin Money Business Banking Review — FAQs
Why should a company open a business checking account with Virgin Money?
The flexibility to choose how you want to handle your business’s financial needs is a major perk of utilising Virgin Money. The M account, unlike other rivals like Mettle, gives single proprietors and small businesses the option of keeping an overdraft at no cost, provided they are willing to conduct all of their financial transactions online.
The regular Business Account’s costs are low (and free for two years), and the other bonuses, including cashback and discounts on consumer purchases, are much appreciated. In theory, you may also manage your funds by visiting one of the more than one hundred Virgin Money branches spread throughout the high street in the United Kingdom.
Virgin Money customers have up to £85,000 in deposits insured by the Financial Services Compensation Scheme. Given Virgin Money’s ties to institutions like Northern Rock with a shaky track record, this might provide some much-needed stability for a small firm or lone proprietor.
The partnership with Virgin Startup will be well received by those running small businesses. For users with a Business Account, this feature opens up access to resources like business mentoring and loans without collateral.
Is it a bad idea to open a business bank account with Virgin Money?
The Virgin Money Android app is very unreliable, and the bank’s online and telephone support services have a less-than-stellar reputation. Because customers cannot just go into a branch when they have questions or concerns, this may cause them to rethink opening an M Account.
Make sure there is a Virgin Money branch nearby, even if you already have a Business Account with the company. Over 30 locations (mostly in Scotland and northern England) will be closing by the end of 2021, making it one of the few remaining popular banks with fewer locations.
Invoices cannot be created using the Virgin Money app. You can sync your money with apps like Sage, Xero, or QuickBooks with just the tap of a button, but doing so will need a monthly membership cost in addition to your Virgin Money fees.
How much does it cost to maintain a business checking account with Virgin Money?
The M Account, Virgin Money’s most basic checking account, costs nothing to open and maintain, albeit there is a 90-pence fee for every £100 in cash withdrawals. That means no hidden costs attached to domestic money transfers or credit card purchases. An overdraft on an M Account incurs interest of around 12.7% per year.
If you’d rather have access to a Virgin Money person in a physical branch, you’ll need to open a Business Current Account, which comes with a £6.50 monthly cost after the first 25 months and a transaction fee of up to 70 pence. While the overdraft interest rate will be the same as with an M account, the expenses associated with establishing a larger overdraft limit will likely increase.
Virgin Money debit cards are connected to your account and give cashback and store discounts to help offset these costs. If you don’t have enough money in your Business Account, all purchases made with this card will be debited from that amount. This is not a prepaid expenditure card.
How does Virgin Money fare with its business users?
Herein lies one of Virgin Money’s greatest weaknesses. From more than 5,000 reviews, Virgin Money has just a one-star rating on Trustpilot. According to Trustpilot, this is a negative.
The app’s slowness and lack of modern features are the most common criticisms. Android users appear to be more affected by this than iOS users, since reviews in the Google Play Store are just as negative as those in the Apple App Store.
If you have an M Account, transferring money may be difficult or impossible due to the app’s poor performance. Another typical complaint is poor or non-existent customer service.
For the sake of fairness, it should be noted that most of the negative Trustpilot reviews seem to be coming from individual users, rather than corporate ones. Even so, it’s important to keep in mind if you’re thinking about switching your business’s banking to Virgin Money.
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